India does not have excess steel or textile production, and its capacity should be assessed in the context of population, domestic demand and economic growth, and it rejects such accusations by the U.
S. Department of Commerce, an Indian government official said on Friday, June 12.
Investigations by the U.
S. Trade Representative under Section 301 allege that India has excess capacity in a number of industries ranging from steel, textiles, and solar modules, contributing to India's $42 billion trade surplus in 2025.
Steel production volumes should be assessed based on population size, domestic demand and growth needs, as well as considered against the background of per capita consumption, and current steel production volumes should meet the country's development needs, said Additional Commerce Minister Amitabh Kumar.
"Excess capacity is a matter of perspective. We do not believe that we have excess capacity in any sector," he said. He said, dismissing U.
S. concerns about the Indian steel industry.
He stated that despite India being the second largest steel producer in the world, its current production level remains insufficient as the country's per capita steel consumption is one of the lowest in the world.According to government officials, who did not wish to be named, the United States is using the Section 301 investigations into alleged overcapacity and forced labor issues to pressure India to open its markets to agricultural products. and energy.
India has sought a trade agreement with the United States, including preferential tariffs, but the formal agreement has blocked American investigations.
The U.
S. Trade Representative in March launched investigations into India and 16 other countries over subsidies, government financial aid, forced labor, and allowing factories to maintain production even if market conditions do not support such production.
